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tv   Markets Now  FOX Business  January 24, 2013 11:00am-1:00pm EST

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stuart: the constitutional amendment is not an easy one. >> and enormous -- stuart: we found some areas of agreement between myself, i am a conservative, and don. we both agreed that this economy will do well because of energy. we both believe it is on the upswing because of housing. >> that is all you have to say? stuart: we also agree on taxes. >> we should have a free enterprise, free market system. stuart: why are you such a supporter of the most leftist president in american history? >> it is not just a chief
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financial officer, it is a leader of our nation. he has no peers when it comes to any other candidate on the republican side or any other republican sitting in the senate. we are out of time. connell: good morning, everyone. i am connell mcshane. dagen: i am dagen mcdowell. things are looking up on the jobs front. connell: monica crowley. dagen: dreamliner, the troubles have not gone away for boeing. michael dell has ordered one of them. connell: then there is jamie dimon and john chambers. you will be hearing from both of them in this hour. liz claman at the world economic
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forum. cheryl: stocks now and every 15 minutes. apple. nicole: i will show you apple in a moment. the dow, the s&p are doing quite well. five-year highs. highs that we have not seen since 2007. the tech heavy nasdaq, apple weighing on the nasdaq. are we almost at 14,000? we cannot believe it. what a five-year run this has been. ibm helping the markets along yesterday. today, apple delivering news that is below the analysts estimate. the shareholders are certainly disappointed today when they see their stock down over 10%. $461. the low of the day was $450. not a good day for apple while all of its competitors are
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soaring today. connell: the stock market looks pretty good. the economy looking better. john brown joins us. senior economic consultant at euro pacific. have we turned the corner a little bit? >> i think there is reason for some optimism. i think strategically the economy is still in very bad shape. tactically, consumers are beginning to spend. that is a good thing. things are getting better. therefore people are spending. government has to take reality down the road. it has borrowed against the credit of the young and the future. meanwhile, consumers have
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deleveraged. they have saved a considerable amount of cash despite low interest rates. now, they are frustrated about a recession. they have negative interest rates and attempted to buy a new car. the attempted with new families to buy new housing. things are picking up, in that respect. that is good. connell: first of all, and the jobless claims, some of this may be seasonal. we may pay for this, so to speak. on your point about consumer spending, i wonder why people are more confident and they are not thinking about the issues and washington. do people just not care about that? certainly, they must care about their paycheck. isn't it discouraging to a lot of people to have smaller paychecks? >> that is a very interesting thing you say.
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i totally agree with you. i did not say confident. they are prepared to spend. i think that is a big danger. masses of money being pushed into the system. we are not facing reality anymore. connell: huge critics of that type of behavior. look at the stock market. off again today. soon it will be at 14,000. the dow at 13867. that makes people feel better. do you like what you see in the stock market or does it worry you more about the future? what do you make of it? >> of course, what you are saying is absolutely right. the fact is, individuals are not ready to return to the stock market. it is mainly institutional work.
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this great cash balance and so there is money flowing into the stock market. i think people see the bond market is the biggest travel ball. there is reason to be optimistic in certain areas. for example, in natural gas if you have a producer, those areas, i think, are very good. the energy picture for the united states is really quite bullish looking to the future. that will help. connell: always good to see you. thanks a lot. >> thank you very much,. connell: the big story in d.c. today would be john kerry. there he is. from what we have been told, a protester just had to be dragged out of that room a few minutes ago. the current record. of state hillary clinton was there yesterday testifying about
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the benghazi attacks. >> the democrats have their drool buckets ready. they think she will be the next president and hoping that she thinks of them favorably. it is all about 2016 for most of them. there were some republicans who opposed some tough questions to her answer real questions to her. dagen: to look at her and say, i would have fired you, that is just posturing. >> that is true, dagen. so much of this did not get to the core view. they knew full well that it was not due to a spontaneous uprising. connell: what does it matter now? >> that i think was the quote of
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the week, if not the quote of the year. i found it to be so outrageous. first of all, it matters to the four families of those four dead americans. it also matters that she and this administration lied to the american people for four months about what caused this in the cover-up afterwards. the other thing that matters is that the lack of respect from benghazi has been sent to our enemies. we were covering the algerian hostage crisis. when our enemy sees that the united states will not retaliate when america is hit, when americans are killed or taken hostage, that emboldens the enemy. you will see more and more of algeria. that is what matters. dagen: what did we find out that we did not already know? there is one suspect still that they have under surveillance. beyond that, what is the point
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of this? >> it was pointless. what were they covering up? that was the core issue. what were we really doing in benghazi? why was the ambassador there with only two armed guard that 9:30 p.m. at night? we did not get to any of the core issues. it was all just political posturing speak. i found myself making about future, you know, it is almost sickening to do this, 2016 and watching her and marco rubio. will secretary clinton run? you should be thinking about other things. >> there are four dead americans here. that has not happened in 20-30 years. we deserve answers. families deserve answers. instead, all we got was politics.
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dagen: most lawmakers do not how to cross-examine a lawyer. >> most of them are lawyers. go figure. dagen: good to see you. thank you so much, monica. connell: the stock market is looking pretty good. if you are a smoker and you live in oregon, light up now because soon, you will not be able to do so. the state of oregon is posing a bill to make cigarettes illegal without a doctor's prescription. if they pass eight, violators of the new law would face a penalty and a year in prison. you think google has your back? you may want to think again. google complied 88% of the time over 20,000 requests made by governments around the world. request four data off now by 70%
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since google started the report. dell, this is some story about michael dell. he is buying a 7873 letter. "wall street journal" reported on it. what will it be used for if he gets it? we do not know. the business jet urgent of the dreamliner costs $200 million before the millions needed to add the amenities. the second largest corporate jet of its kind. dagen: a double-decker, baby. that thing is only 99 feet long and not enough to spread out.
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go for the double-decker. [ laughter ] connell: hard-core, as they say. dagen: for more on the brutal drop and out. today, crushed after last night's quarterly earnings, charles payne has some thoughts on it. connell: apple. bundle up, midwest. the midst of a deep freeze. it is winter and it is cold. no, it is dangerously cold for a lot of people. we will have a live report from chicago. dagen: dennis kneale in the next hour has an exclusive interview with the ceo of hostess. if we are going to talk about twinkies, you better roll some video of twinkies. take a look at the oil market today. ♪
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connell: markets now at a quarter past the hour. let's go back to nicole petallides. nicole: let's take a look at research in motion. they have had quite a run over the last few months. today of 3.25%. there is some big news here. lenovo is assessing potential
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acquisition targets. including a deal with the blackberry maker, research in motion. there was an interview by the chief financial officer of lenovo over in davos. they are actually acknowledging the fact that they are actually looking at research in motion and many others. the last three months, it is up 130%. next week, on january 30, 2000, we will get the blood very kind. dagen: talk to us, mr. payne, about apple.
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charles: you know, it was hard to find anything good in there. on iphones, -- the so-called halo effect is kind of fading. ipads were the only thing that beats. ipads are still down from, you know, a year ago. a low margin product. it is still going down anyway. also, a shift to the cheaper urgent. >> here is the thing, this is really what worries a lot of people, you have the revenue, 41-43 billion a year ago. that is not a lot of upside.
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37.5-38. they crushed them. connell: for years, to set the bar low. now they claim, whether it was a reasonable -- do you believe that? charles: again, you can have a difference of several tricks that you put out there as guidelines for investors and analysts. you still have to beat them. i appreciate that you told me about your gross margins, but year-over-year is a crusher. international business is starting to slide. it may suggest that, you know what, the people around the world i can afford this apple products have full penetration. we talked about this rumor. what kind of margins would they
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see? there is a cold around this stock. by the way, if you send me hateful tweets, you may not want to do that on your corporate about if i may one day patronize your business. charles: it never got over value from traditional valuation metrics. the overall market. you could argue that it was cheap yesterday and cheap today. before i go, technically, there is not a lot of support in this thing. i do not think you get that low. that is from a technician's point of view. connell: thank you, charlie. dagen: nasty comments from people just talking about the stock.
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[ laughter ] connell: when you think on a relative basis of all the things that dagen says that is apple -- let's move on here. dagen: a deep freeze. it is extremely cold. dangerously so in many parts of this country. is it a concern for many businesses? connell: let's take a look at currencies. charles ventured overseas. see how everything is shaping up against the dollar today. we will be right back. ♪
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connell: it is still cold out there. subzero temperatures. dagen: mike tobin is not dressed well enough. he is in a very cold chicago. >> well, i have a puffy coat and optimism from i called pat helps keep me warm. the firefighters -- there is a fire that has been burning for days. it has turned into a huge ice
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castle. as the ice builds up, there is now a risk of collapse. good luck to those firefighters in these bitter cold temperatures. the upper midwest, the northeastern states are getting it. it is so cold that new hampshire ski resorts have shut down. several deaths have resulted from the cold. the lake effect is doing its thing. it may mean that you get a day off of school. it may without some snow accumulation for the first time in in a ms. long -- ending this long dry spell.
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dagen: you are a tough guy because your ears are not covered. connell: thank you. timothy geithner said to be leaving tomorrow. jack lew is making his rounds on capitol hill today. dagen: jpmorgan ceo with liz claman and davos, switzerland. we will have some of that interview coming up. it has been a winner for the essen the today. here are some of the gainers. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ]
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connell: he is making his case to be treasury secretary. jack lew on capitol hill today. from the slopes of davos, some of the biggest names in business today talking to our very own liz claman. just a crushing day for apple. the stock is getting hammered. concerns about growth that apple down by 10%. dagen: the dow getting close to its all-time high. nicole: it sure is. the s&p is back about 600. as you noted, the dow that 13,871. take a look. right now, at this moment, we are at session highs.
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they have failed to meet that analysts estimates. that outlook is worries some. research in motion. we had talk about that with lenovo. microsoft has arrows. apple is struggling. forget about 600, $700. all the analysts jump on board and cut their price targets. netflix is soaring today. keeping an eye on washington. back to you. dagen: thank you. connell: a couple of things today. some changes at the sdc. dagen: first prosecutor ever.
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also, jack lew on deck as the next treasury secretary. what does jason riley think the both of these? great to see you. jack lew is probably the most important of the two figures, in terms of the fiscal health of the country. >> someone very ecologically aligned with the president. someone i think he can count on to push his agenda. he wants to preserve our entitlement programs as they are currently constructed. jack lew is someone who shares that agenda. you compare this with how different his background is to some of the other treasury picks in recent years. you had bob rubin under clinton. you had john snow under bush.
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people with experience in global finance and economic policy. jack lew really has no, he is pretty much -- connell: and a project i. what is your view on how much these things matter? he has been around a long time. at the end of the day, the foreign policy will come out of the white house. >> i think there is some truth to that. treasury policy will be run out of the white house. the president will have a strong partner. and articulate partner with a reputation for pushing a hard bargain. jack lose primary role here will be to pushing for that.
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dagen: jack lew may be staring at a sudden unexpected spike in interest rates. >> that is why it is interesting they chose someone with no expertise. it could come back to haunt them. i do not think that will be his role. his role will be the press. if he cannot succeed, then to push for the 2014 elections. connell: they do not know that much about her. what should they know? >> she deserves high marks for her prosecution for the first world trade center bombing. george bush capper on for a while. she deserves high marks for that.
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[talking over each other] >> it was a pretty strong case. it was a less than vigorous prosecution of teamsters. she took some hits for that. it will be more of the same. her predecessor, mary schapiro, was known for protecting democrats and unions. pushing for giving unions more. i think you can expect the same, pretty much out of mary jo white. dagen: thank you very much. great insight. apple shareholders feeling very bruised today. that stock in a major selloff. shibani joshi has been talking with people in the know. connell: and then we will go to liz claman. two of the most influential
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ceos. liz has interviews over in davos. markets now. let's look at the markets. talking about interest rates a little while ago. we will be back with liz in davos. ♪ twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. you know it can be hard to lbreathe, and how that feels.e, copd includes chronic bronchitis and emphysema.
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♪ >> i have your fox business brief. jobless claims unexpectedly fell last week hitting a five-year low. 330,000 people filed for first-time benefits compared to the 355,000 forecast. burger king has stopped buying beef from an irish provider. the british food industry was hit hard last week after products sold in grocery stores. burger king says it will be using products from another food supplier. science does not or. to new jersey men are suing subway because of sandwiches are not 12 inches long. an australian man posted a picture on his facebook page. that is the latest from the fox business network. giving you the power to prosper. ♪
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liz: we had a couple of guys coming through here who are very optimistic. all three of them extremely optimistic. particularly, about the u.s. economy. our you prevent i say the table is very well said. capable, plenty of cash. 5 million more working. housing has turned totally. it will not get better in spite of the economy. if you look at america and look at other things. those things are great. [talking over each other] >> policy could be it.
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dagen: of course that was liz claman talking to jamie dimon. the table is set for the economy to do well. connell: one of the many influential leaders over there in davos. liz is live with us now with another one of those leaders. take it away. liz: what jamie dimon met by good policy was in essence of the grand bargain of sorts that would put a end to all the questions about spending and taxation so businesses could go forward. those questions will always be there. jpmorgan just came out with great earnings last week. what you see there is they can do business in any kind of atmosphere. there was not as much complaining by jamie dimon this time around about all the legislation. john chambers of cisco, they
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route all of the big events. in fact, they wanted the entire london olympics. they brought that up. i talked about how that is one american company that is at least maintaining that leadership. here is what john chambers said. >> we were very fortunate. a big partner with media. the point that you sent mail for, and thank you for it, we bring video to life that we changed productivity, we changed goals and we are a company that is trying to be transformational to become the top it company in the world. liz: people were critical of cisco. they said the stock was not doing anything. in the meantime, your stock is up 25% since just this last november.
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>> i think people got comfortable. we made five transitions and about 20 years at cisco. i think we are in the high-growth areas. all the things you hear about technology, we grew 61% this last quarter. mobility we grew 38%. we are transforming to solve a government need. we talked about how we create new industries. meeting with israel we talked about security and direction. meeting with the uk we talked about the leadership team there and transforming the country. we have the chance to become the number one i two player and we are going to go for it.
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liz: what do you say about qualcomm. he said everything is wireless. everything is smart phone. you do not need cable. [ laughter ] >> never argue with them. he is right. 38% of our growth has been there. we are the pure leader there. we are becoming the partner of all of his customers. the market will be both a wire world and a wireless world. the stock has outperformed. what he has done is basically said, how do we do both. how do we focus on the customers entertainment value? while we will be a wireless world growing fast, you will see both in your home cable throughout the marketplace. liz: start with that.
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you know what, we could not do our job here without cisco. that is our wireless router. you still need the cisco equipment. we thought that was interesting. all of the world and business leaders have been congregating here. i want to let everyone know, all of our interviews, the entire jamie dimon interview and everyone else is on fox / davos. coming up in the next hour, another leader in american business. the chairman and ceo of bed products. they are the largest medical device maker. they will be hit with a 2.3% medical device tax. stay tuned for the interview. it is in the next hour. we have the coke ceo at 3:00 p.m. eastern.
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so much more. i will send it back to you guys in new york. it is freezing here, by the way, dagen. dagen: it was about 11 degrees here this morning. it is in territory throughout the region. connell: let's go back to nicole petallides. nicole: i want to take a look at apple. this is a day where we are certainly kicking off. apple is way on the nasdaq. not too far off from the earlier highs of the day. here is a look at apple. up from its lows of 450 and change. certainly, apple shareholders are certainly disappointed. what happened? all the people got in there and had high notes for apple.
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there is one thing we should know, they did have record iphone and ipad sales. the numbers fail to read that wall street estimates. it certainly continues to waste on apple. connell: thank you. dagen: what is apples next move to help the tech giant to at least stay on top of its game? connell: shibani joshi will cover this. shibani: apple shares are just getting dogged today. there is lots of concern about what is happening with the company's mojo. eighteen different companies, including article eighth have cut the companies price target by $132. the average price target is 612. concerns about apple's core growth. yesterday, the iphone sales
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fell short of that 50 million mark. that was the lines in the sand that the company needed to be. also, cheaper iphone models were selling better than the iphone5. the iphone for is essentially for free with a carrier. consumers are more price conscious. investors think that there is a cap on growth. what will get the company's mojo back, brian marshall said today that apple should bring to market a lower price point iphone. it will drive significant iphone adoption. connell and dagen, the one thing i want to point out, yes, the stock is down today. people have been quite bearish.
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the fundamentals still remain quite strong. it is not that the stock is doa, it just is not growing. it does not have that edge it once had a year or two ago. connell: we will talk about a subject that is close to our hearts. lack of sleep. we will talk about how companies are not taking action on that. dagen: it will make you crazy. connell and i can both talk about that. you can find some winners on the nasdaq. apple is a major loser today. ♪ what are you doing?
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dagen: really? some good news for boeing. bloomberg reporting that delta airlines are in talks with both airbus and boeing to buy $1 billion of new jets. d is looking to buy about 24-30 current, single aisle versions of the boeing 737 instead of it newer version. connell: it turns out, surprise surprise that a good nights rest is good for business. exhausted employees are hurting productivity and costing companies over $63 billion a year in the u.s. companies like procter & gamble, goldman sachs and others are now
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investing in programs to help their employees sleep better. whatever. maybe that is our excuse, i guess. dagen: we are not allowed to complain to one another about lack of sleep. we all sleep three hours a night and get up at 3:00 o'clock in the morning. some of the big defense sector names in the red. connell: let's get the trade from sandra smith. sandra: if you own some of these, you probably will not get much sleep tonight. they are taking big hits. these are stocks that have done investors quite well over the last year. the prophets in the fourth quarter were down 17%. they are making some management changes. they beat higher profits for 2013. a little bit of a rosy outlook for the year. remember, these defense contractors under a lot of
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pressure. also, look at -- sales were flat. they also had lower expectations for 2013. they also talked about a very uncertain future as far as defense spending. by the way, also up about 15% over the last year. momentum has been to the upside. i do not know about you guys, but, after that, i need something to perk me up. starbucks. it is after the bell tonight. we will have a look ahead to that after the bell. dagen: you look great. sandra: thank you. dagen: i mean that. connell: she always looks terrific. the question is, can private investors make a profitable
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twinkie? negotiating to sell off its big namebrand treats. dennis will have the interview with the ceo. that is straightahead. ♪ ♪
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lifelock protection risk free for a full 60 days. use promo code: gethelp. plus get this document shredder free-- but only if you act right now. call the number on your screen now! cheryl: i am cheryl casone. coming up at noon eastern time, we have the tail of companies for you, shares of apple are dropping, shares of netflix are actually soaring. we will talk about both of those names coming up during the hour. dennis: baking profitable twinkie, bankrupt hostess to some of its big-name brand treats, an exclusive interview with ceo greg rayburn on who may wind up owning the twinkie brand. cheryl: jobless claims coming in today hit a five year low, but
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we have a top investment strategist who says there's a lot of worry out there and you can blame washington. who is responsible for lots of things there economy. top of the hour, stocks down every 15 minutes and nicole petallides on the floor of the stock exchange. we are up at least on the dow pretty big despite what we are seeing on the nasdaq. detail two markets. nicole: we followed apple and we knew that was way on the nasdaq, that is what happened. the dow jones industrial average, the dow theory has not comprised apple within and is not heavily weighted in the s&p so the s&p and the dow moving higher once again, the dow is at a five year i like the isn't the above 1500 to dick for the first time since 2007 so these are stellar markets. it is great to report to people who are along the markets. a nice run. on the other hand we started talk about apple which has come and the significant pressure
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trading as low as 450 after its quarterly report. the short sale rule is in effect if you dropped and% in regular trading exchanges prevent sales and a certain way, you can actually sell stock to prevent a pylon on the stock that is already beaten down. that is the case today apple. [talking over each other] >> thank you very much. economic data coming in, jobless claims at a low as point since 2008. my next guest says when it comes to the economy many big risks are out there. the director of equity trading joins me now. you are looking ahead to the debt ceiling and saying another policy error could be a big market hit. what do you mean by that? >> we look can't think we are still in this leveraging scenario. it is not over. debt levels are still high in the u.s. and many developing economies. we have to bring those down to
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create a nice fundamental situation. that provides a lot of opportunity for policymakers to make mistakes or mess things up. and the extension in front of -- a sequester coming. the extension of the budgets for the coming year, in europe we still have spain refinancing 20% of gdp in debt, more than enough opportunities, that is not a best case. >> you are talking about the united states, the worst enemy at this point. to get these jobless claims at week 5-year lows, nice to see but if unemployment is at 10%, in range for 2013, and it will take 1/2% of of the gdp, no jobs, don't even have an
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economic recovery and no jobs. >> not necessarily a bad economy, we are in an okay economy, not great because 1/2%, from a fiscal austerity coming through the pike, the job situation is improving gradually, housing is and i still wind that has been a head wind for multiple years. the economy is in ok shape but not something we can jump up and down and get excited that we're off to the races at this point in time so we have a lot of work to do and a lot of chances to make errors. we are advising people to be cautiously optimistic in your portfolio positioning. >> which target is at the end of the year? >> don't make s&p targets on a 1-year basis. we can say over the next couple years we are thinking 6% to annual% gains. >> that would be ok considering
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what we are facing, jason pride. dennis: shares of apple taking a nose dive. you put a buy on apple, able twenty-third with 1 $24 in, didn't even take off in september. are you going to take off your recommendation now. >> obviously we definitely should have looking back taking the opportunity to run up, substantially been a little more measured given the risk that some point came to fruition but the reality is we're talking now and as of now at $460 a share we think apple is a body at this. >> when you put in the strong buy, what level? >> november, mid november. actually is an incredibly cheap
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stock at a price-earnings multiple phase and for a lot of shareholders who got shut out now is there time to get back in but the technical guys talk about support levels and apple had this $505 support that fell through, the next one at 460. if it closes before 460 today can it go even farther down? >> it is possible. i'm not a technical analyst. we really focus on fundamental analysis. as you point out you look at calendar year 2014 which we updated cabane revise downward last night, apple trading at less than we kind times earnings. pretty astounding. >> they came 47.5 million iphone sales. that is a boat load but wall street $150 million. is this an overreaction? >> we think it is an overreaction. one point to bring out is growth is still grappling apple.
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if you look at the ipad, the iphone, 22%, 28% growth, very respectable, not the explosive growth. >> when you are earning $13 billion it is tough to have robust growth on top of that. you get the feeling this is not just numbers anymore. this is promotion. everyone fell in love with apple ten years ago, almost 20% now. the law for apple now going to divert away into other tech stocks? is google better by? >> yes. i agree with that sentiment. as apple has fallen, that found other homes, temporary homes. we have hold recommendation on google. we think apple is a good place to be and here's another fact. if you think of the december quarter, apple, $147 billion in
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cash and investments account for a third of the market cap. people were not thinking about the tax. >> one last question. it has fallen today, is scary. spell your montalban right now? tell your mom to wait a few weeks and see the goes down more? >> i do speak to my mom occasionally and i will tell you we have a strong recommendation of the stock and i tell her to do what i am telling her to do. thank you for being with us. cheryl: silver, and next shiny investment outside the stock market. we will talk to my dad later on. dennis: jeff flock at elmhurst coins in illinois counting his change. jeff: i am making bad investments on my own but take a look at what i have got here. this is something the mint has run out of, there has been so
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much interest in and what am i looking at right here? >> the 2013 american silver eagles. >> this is silver bullion, this is $1 of face value, but it is actually a troy ounce, an entire troy ounce of silver. what is this going for? >> retail for $37. >> tell me this. as we look at revenue from the mint on their bullion sales, bullion is something people died because they want the value of the underlying metal, take a look at how bullion sales have run up over several years. >> preparing for the future. >> preparing for the worst in the future. >> possibly. that interest continuing to build. >> very steady and growing.
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>> interest in all sorts of coins. i used to collect coins as a kid and you see them all through the counter here, but this notion of just zoning the metal is something that is throwing in popularity as kevin indicated and as you saw those revenue numbers come in and the mint does make its fair bit of money on this. they returned $700 million to the u.s. treasury last year. there is money in making money apparently. >> that is what we are all about. thank you, jeff flock. cheryl: breaks for women ready to fight for their country, lifting the ban of women in combat. dennis: this is progress? the quest to make a profitable twinkie, my exclusive 1-on-1 with greg rayburn on selling the brand to the private side. cheryl: more from liz claman at the world economic forum in
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davos, switzerland where she talks to the ceo of medtronic. take a look at oil. a lot of action in the market, we're up over $1. we are right back. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
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cheryl: talking stocks, every 15 minutes team coverage, phil flynn in the trading pits of the cme. sandra smith at the data wizard with a preview of "after the bell" earnings and charles payne showing us how to make money. nicole petallides on the floor of the new york stock exchange, dow 78. >> when you see the dallas 78, earlier highs by 20 points, we it five your highs with the dow ideas and be back to levels we
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haven't seen in 2007, and markets looking good, volume of $175 million, down volume of $83 million, when we look from sector to sector you are seeing retailers indexs rider, drug indexes higher, the banking index also higher, the transportation index an all-time highs, the russell 2,000 all-time highs, small caps what i am referring to and that is from the environment we are seeing, the fact the we have tough earnings from apple waiting on the nasdaq which is a tech heavy composite index. we are seeing a winning day on wall street. phil flynn, the latest at the stock exchange in chicago. jeff: oil prices are rebounding from a big scare yesterday on the seaway pipeline. word that a glitch shut the pipeline down or reduced by half raised concerns that the flood in oklahoma would build back again. news today that it will be a short-term situation, they should get back to full
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capacity. 4,000 barrels a day by next week bringing the market back up. more oil down in the gulf of mexico is bullish. more in line with the global market to get the oil out the world, natural gas today, we have a bigger drawdown than expected, natural gas still down, a reversal on this cold weather. back to you. cheryl: we are looking at starbucks after dismal earnings reports, had come up with something to look at "after the bell" that might be decent, the real story with starbucks is stock over the past several months has gone up 20%. a lot of momentum to the upside. it is only up a penny ahead of the results and today's trading session some stocks that might move on the report, green mountain coffee, duncan brands, the holding company, these are the sympathy moves. here are the expectations for starbucks, earnings per share expected $0.57 the average from
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analysts, net income $2.4 billion, revenue coming in at $3.84 billion, the the numbers to watch "after the bell" tonight, up just a bit but huge momentum to the upside, expanding overseas especially keen markets in places like china and india, ubs upgraded shares to $64, going back to service, 64 from 54, another $10 from where it is and opening new stores. what that "after the bell," these stocks, will be joining david asman to breakdown those earnings. dennis: thank you. phil flynn and nicole petallides. charles payne talking about travel to, >> their home page is amazing. they have $90 and all kinds of different fundings. i recommended this to my trading clients. my trading target was 24.
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it is already there. something is going on. that is why i like it, for people who are trying to invest in the stock market. 25% today. this was my idea before the market opened. north america, europe, operating incomes were down. why is that good? they bolstered their sales force, putting a lot of money into technology, a lot of money into marketing. i like companies that are not afraid to grow their business. the ceos are tiptoeing around shareholders. the ultimate example is amazon. never cared about wall street or what they did, this is a stock, you don't like that? [talking over each other] >> very crowded space. i see the action in the stock today. charles: alike as a lot. and you know me --
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[talking over each other] charles: the point i'm trying to make is people should look for companies investing in this. i'm trying to help people make money, we should be making people money, i want people watching to make money. dennis: thank you very much charles payne. cheryl: of questions this morning over the benghazi terror attack, john kerry's confirmation hearing for secretary of state. dennis: private investors trying to come together to bake a profitable twinkie. craig rayburn joins us for a fox business exclusive on who may wind up with it. first today's currency against the u.s. dollar.
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>> 20 minutes past the hour, your fox news minute, north korea threatening to launch long-range rockets and a nuclear test following new un sanctions. statement from leader kim jong un says it is a feast -- peaceful bid to send a satellite
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into space but as a military purpose to attack the united states. france is making progress in its battle with radical islamists in the west african nation of mali. one faction of the rebel group has split off from its al qaeda allies to form a new group looking for a, quote, negotiated solution to the conflict. this follows 12 days of air strikes. unemployment in spain has hit a new record high, twenty-six million spaniards out of work. let's get you back tiexiera casone. cheryl: we having news alert for you right now, germany urging its citizens to leave benghazi, libya, citing knowledge of a threat, the death of four americans and then got the highlight the confirmation hearing for senator john kerry, secretary of state. secretary of state hillary clinton testified before the senate foreign relations
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committee over the benghazi attacks yesterday. >> we were misled, there were supposedly protests and something spraying out of that and that was easily obtained, that was not a fact. the american people could have known that within days and didn't. >> effectively and four dead americans, was in a protest or because of guys out for what one might decide to kill americans? what difference at this point does it make? is our job to figure out what happened and do everything we can to prevent it from ever happening again. >> middle east and terrorism analysts bother of the coming revolution, struggle for freedom and the least, the big statement from her was -- what difference does it make? does that serve the u.s.'s goal in the middle east right now? >> of course not. just imagine what is the
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difference between four people killed by erica payne or jihadists? a huge difference. if we received al qaeda and those militias as friendly most likely those will be received as friendly because they were attacking gaddafi. they don't have security measures and most likely this is the reason why the administration was confused. it is all about why the attacks of taken place, who is coordinating them and what is the future of these attacks? we can begin again by the same people with the same tactics. cheryl: do you think this is a global policy failure? that is crucial right now because we are now into the confirmation hearings for john kerry from massachusetts who may likely be the next secretary of state. out as a live picture you're looking at, and request and what he would do most likely in the middle east. where are we? are we failing? >> i wish in those hearings with the new secretary would ask the question, what is the general
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direction, is al qaeda going down, stated by the administration or are we seeing an expansion of al qaeda from somalia and more importantly the capacity for a strike in different countries. to renew our views and al qaeda. cheryl: if you of the arabs spring no one was planning or ready in particular in this country for the rise of al qaeda in places like libya, no one saw syria coming and that is what we have on our hands to go back and say we missed it, we thought it was great that all these countries were finding freedom and democracy and all the sudden you have terror suspect in every country, and all even in egypt. >> absolutely right. we look at the archives and analysis of the administration in the fall of 2010 a few months before, there is nothing that leads us to believe they understood there was a revolt
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coming and nothing to the rest of the leaf out, would take advantage with these. cheryl: thank you. dennis: will live again, my exclusive 1-on-1 with greg raborn next. cheryl: no jackpot for las vegas. why casino revenues rose substantially in the city but first we take a look at the winners on the s&p. big-name for you. netflix, take a look at that one. we will be right back.
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cheryl: looking to bake a profitable twinkie, an exclusive interview about selling off the famous brand. no jackpot for las vegas, casino revenues down. we will tell you why coming up an hour west coast minute and the broadcast industry shedding jobs but guess who is hiring begin united states, arab tv channel al-jazeera, reasons that in the media minute. we are at the bottom of the hour, stocks every 15 minutes. nicole: netflix is huge right now, 38%. a big winner and big loser. it is the tale of two stories. start with netflix, 40% hit a new high, they added subscribers who kept a surprise quarterly profit that nobody expected. stocks soared to new highs and take a look at apple. apple traded $450, $700 stock back in september. remember when it was soaring and
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it was $700, $600 million market cap, this was something everyone was taking a look at. at that time, got to get it in the dow and now they are probably saying be glad it is not in doubt. this huge move to the downside, that would be worth 415 negative dow points. anyone clamoring for it, these are waiting and the s&p 500 is 3.6% but still heavily related in the nasdaq composite and that is why you are seeing the divergence, the nasdaq lower and back to you. dennis: thanks very much. private investors take a profitable twinkie? we may find out as hostess negotiates the sell-off, big brain name, an exclusive interview proceed eo greg rayburn. this friday you going to court on the first big part of yourself offs, $360 million deal, to the flowers buyout
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folks for all of that but another bigger deal may be in the offing. >> a stalking horse bid in, $360 million for the major brand which includes wonder bread and included in that are 20 plants and depot locations. the interest on the cake side of the business. it has been astounding. and it is lined up, and will be significantly higher. >> a stalking horse bid, what do you mean by that? >> selling assets in bankruptcy everything goes to an auction in front of the judge. would you like to do is lineup fair value, you deal with fair value and put that bid in and that is the target for anyone who wants to bid. >> rather than bidding to buy a different brand, these bids are coming in to the whole kit and caboodle, >> we are not carving--carving
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mickey's -- twinkies out mix, it is a billion dollar revenue business and i think the interest level, what i hear from buyers on that side and this is strategic and financial buyers, if you think about it. if you can get $1 billion of sales for iconic brands built over eight decades and unlatch them from the legacy pension and the legacy of contract costs it is a once-in-a-lifetime opportunity for that kind of purchase. >> once they're sure of union pension costs and union rules. >> profit at the ding dong business? >> no question. >> no question. you and i have been out a lot, drunk a lot of vodka, and that's worthy now, give us the scoop and who is the likely buyer of the twinkie stuff? >> i couldn't tell you. honestly, there's multiple parties moving as fast as they can to get in the position, and
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i can't hand cap how many days from now, but we're thinking weeks, not months before we dwet to the point, but i can't say who it will be. >> the debt holders put you in the position, and you may recover every single penny? >> based on where the deals are headed now, and what i anticipate, i'll be shocked if we don't recover a majority of the secured debt or all of it and paid in full. >> that's quite a feat to let the debt holders come out whole. good job. >> excited. >> of course. union jobs not coming back, but thank you, bakers. >> that's up tots buyers. >> thank you so much. good luck to you, sir. >> thank you. >> appreciate you being here. >> yeah. >> cheryl? cheryl: time for your west coast minute. nevada casinos louising $1.2 # billion last year, fourth consecutive year of losses for the state's biggest industry. food and hotel revenue up,
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gaming revenue down. things looking up this year for nevada as casino that that typically gross a million or many each. the state legislature considering a bill to make nicotine a controlled substance. this would make it illegal to possess or distribute cigarettes without a doctor's note. if the bill passes, violaters could have a year in prison, a $6250 fine, or both because doctors want to prescribe cigarettes to people? the california legislators trying to increase fines for thought convicted of swatting, with a phony call called to a celebrity's home. there's false emergencies at the homes bieber, tom cruise, and ashton kutcher. that's your west coast minute. >> swatting? because of a swat team?
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got it. secretary panetta proposing this afternoon, has the time come? >> liz claman's at the world economic forum in davos. as we go to break, take a look at the ten year treasury. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]'ll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪
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♪ >> tracy burn with the fox nominating mary jo white to lead the securities commission. she was the first woman to serve as the u.s. attorney in manhattan, and if confirmed by the senate, she'll become the first prosecutor to head the fcc. the president is set to announce the nomination in a ceremony at 2:30 p.m. eastern. mortgage rates hitting a four-month high, according to freddy mack, the average rate is 3.42%. consider this when planning the next trip. china airlines, pam airline, and air india, the most dangerous airlines in the world according to the crash data evaluation center. that calculates rankings based on aircraft loss accidents and serious incidents over the past 30 years. that's the latest from the fox business network, giving you the power to prosper.
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>> when you are a u.s. based company and have your business come from outside the united states, a gathering of 50 world leaders and 900 major ceos is a good place to be. >> also a good place for our liz claman in davos, swits land, liz? >> health care, who does it beth? who has the best companies? is it us? in the face of a new health care reform system, can our best and brightest maintain the lead in the scene? we're talking to medtronic chairman and ceo about this, and i'd really wanted to know from you whose system do you covet the most from a medical device stand point? >> well, what system specifically? i think the u.k., for example, in many ways has an extremely good health care technology assessment group which then recommends devices or therapies
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basedded on grounded economic value which are then deployed. it's not perfect because the deployment mechanism is not perfect in the u.k., and, you know, sometimes the issues of too much cost control and others. there could be other systems as one as far away as india where the patient accountability, because the patient pay system, it is big, and through that, you actually drive competition between different health care providers, and through that, get high quality and low cost so, you know, what i look for are a number of things. where does the health care system value outcomes over procedures? where does the health care system give patients some level of transparency and accountability, and, finally, is there a system where the government really, main authorities are really on top of this and are encouraging it, and leadership, i have to say, you know, the chinese government is
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trying real hard to be very broad about what they want to do and not make mistakes other countries have made. >> half of your business comes from outside the united states. where do you see the best opportunity right now? >> well, you know, outside the united states? to be fair, we've got businesses in europe called the developed markets so so if you take the developed markets out, it's really only 10% of the business coming from emerging markets, and that 10 mcrepresents our biggest growth opportunity because they are the most under rated therapies, and that includes china, india, middle east, huge opportunity there, central europe, and southeast asia. >> medical device tax, part of the affordable health care act, but i've seen numbers, but i want numbers from you on how much it costs you every year?
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>> from $150 million to $175 million. >> can you absorb it to make a profit? >> we have to. look, there's pressures that we get from all kinds of different areas, and this is one of them, and we're committed to making tradeoffs to absorb it and still meet our commitments. >> you've got $18 billion parked overseas. i'm sure you're waiting on congress to say something about repatriation tax holiday. you know, there are -- even the "wall street journal" had an article that repatriation doesn't work, and last time we did it in 2004, there was billions of dollars and laid off 11,000 people. >> yeah, i think in the interest of business, to grow business in the u.s., you are going to invest in the u.s.. now, there may be other things that happen at the same time, and maybe we can put guardrails around it, but, you know, let's not take on past history saying
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it's going to be like that. again, we have to work together knowing that that money can be used more effectively in the u.s., and let's structure something that works for everybody because, you know, there's lots of areas to invest in the u.s.. we have the best technology capability in the u.s. in the world. we've got the best clinical knowledge and expertise in the u.s.. surely, we can capitalize on that. >> our thanks to liz claman, the hardest working woman in davos. don't miss the sit down with the nissan ceo coming up in the next hour. a quarter til, stocks now, nicole is live on the new york stock exchange, nicole? >> we have given back the rally we had here with the dow at 13877. we are seeing winners, clear winners leading the rally along, retail, drugs, banks, all higher. the oil services sector falling back, but boeing, some of the
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best performers on the dow jones industrials as far as percentage movers. there are the best movers there. market diminished earlier with the up volume outpacing the down volume, but that's why we pulled back. the best performer for the year 2012 hitting new five year high, hp, 0% to the upside -- 20% year to date. >> they needed a pop in the stock. nicole, thank you very much. stay on the technology theme here. dell ceo, michael dell, is buying a boeing 787 dreamliner from the international lease finance corporation. the "wall street journal" telling us that dell owns his own private aircraft reimbursed by the computer maker for the use and management of the aircraft so what the dreamliner is used for is a bit of question, but the journal has a graft showing the business jet
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costs $2 million before the millions needed to add the amenity, the second largest corporate jet of its kind just dwarfed by the air bus. gi jane, remember the movie? women in combat about to be reality. defense secretary panetta proposing lifting the military ban of women in combat giving the military until 2016 to seek special exceptions for jobs nay believe should be closed to women. the throaferl 1994 ban was brought under scrutiny when four female service members challenged the pentagon. about time, dennis, back to you. >> want a cheap place to move to? how about kansas? close to eliminating the state income tax, a move that many hope serve as a model for other states. that call for phil mickelson might like it too. it's just after one month after
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the largest tax cut in kansas history. critics charge the policies leave many in the state without basic services or proper education. >> they still have good steak. that's good. a good night's sleep is good for business. the results of a new study coming up. >> and the broadcast industry is shedding jobs, but help wanted at the arab tv channel, al jazeera. the details ahead on media minute. >> as we head to break, winners on the nasdaq. as you see, apple is not a winner. bed bath, western digital, and more. we'll be right back. ♪ [ male announcer ] you are a business pro.
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executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and from national. because only national lets you choo any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ ale announcer ] just like you, business pro. just like you. go naonal. go like a pro. just like you. i have obligations. cute tobligations, but obligations.g. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing.
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risk includes possible loss of principal.
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>> media minute time. while other media companies cut back, al jazeera is hiring the they bought al gore's current tv and postedded a hundred job listings, but even in the slump, americans may not want to apply. critics say it's a conduit for radical islam. four years ago, there was a party on air in honor of a terrorist released from prison. on another show, they prayed for alla to wipe out israel. they donated $400 million to the terrorist group, hamas. now, sony just got fragged. u.k. regulators frapping sony with a 400,000 find for failing to prevent a cyberattack on the playstation network. kind of like blaming the victim.
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sony will appeal. the marge their lover, manti teo goes on the tv today for the interview to admit he lied, a little, and for per pitch waiting the fable after he was told she never existed. waiting to hear how you call them your girlfriend when you never met her. >> isn't his parents part of the interview as well? all three of them on the couch, if you will? the dad said she was wonderfulling we love her. never met her. she didn't exist. >> a good story, and then the afters in the story really don't let the facts get in the way of it. i mean, you know, he was swept up. he's 21 years old, i think so. >> yeah, he's young. hopefully plays good football if nothing else. turns out a good night sleep is good for business. research from harvard says over exhausted employees cost companies billions of dollars a
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year, 30% of american workers not sleeping enough to function at peak levels so companies are investing in programs to help better their employees' sleep. i'm thinking ambien, just hand it out at the office party. >> just a good old nap, man, just lie down for 20 minutes, 20 minutes is clutch. >> like you should have a couch in the office. >> if only i didn't have a glass wall. >> you do, that's very r v true. letting you know, not a lot of love for southwest. the tickers luv, watching the stock, trending higher, but not much. fourth quarter profit at the company fell 49% so coming up at 3 p.m. eastern, "countdown to the closing bell," the ceo, gary kelly, with me, talking about how to fix the profit issues and talking jet fuel and the issues with boeing, dennis, because they have the 737s, faithful to the 737, and will he continue te
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with all z issues. >> can't wait to see that. the can kicked down the road, but what about the automatic across the board cuts? the sequester on march 1st. republican senator mike lee on why nothing's done to stop this. >> true, and not quite as big labor. lou dobbs joining many liz is a and lori on dwindling union membership. those ladies up next as "markets now" continue. apple is not in the dow, luckily. ♪
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>> unions recalcitrant helped killed the twinkie, but now there could be a profit on the products without a union restriction. there's a lesson somewhere there, guys. th initial jobless claims today,


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